Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:**Data used in budgeting:**| | Fixed element per month | Variable element per unit ||------------------------|-------------------------|---------------------------|| **Revenue** | $0 | $29.90 || **Direct labor** | $0 | $5.60 || **Direct materials** | $0 | $8.60 || **Manufacturing overhead** | $37,000 | $1.30 || **Selling and administrative expenses** | $27,200 | $0.80 || **Total expenses** | $64,200 | $16.30 |**Actual results for October:**- **Revenue**: $176,095- **Direct labor**: $31,510- **Direct materials**: $49,800- **Manufacturing overhead**: $45,775- **Selling and administrative expenses**: $31,670The activity variance for direct labor in October would be closest to: **Explanation on the Educational Website:**This data represents budgeting and performance reporting in a manufacturing setting. The table details fixed and variable cost components. Fixed costs remain constant regardless of the production level, while variable costs change with the level of activity (units produced).The variance is calculated by comparing budgeted figures (based on 5,900 units) to actual results (5,850 units). This analysis helps identify discrepancies between expected and actual performance, allowing management to make informed decisions. ### Multiple Choice QuestionPlease select the correct answer from the given options:1. ( ) $280 U2. ( ) $280 F3. ( ) $1,530 U4. ( ) $1,530 F#### Explanation:This question provides multiple-choice answers with cost values followed by either "U" or "F", suggesting categories or conditions associated with the costs. Participants are required to choose one option based on the context of the question.

The activity variance is the difference between the flexible budget data and planning budget data.…

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per month $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200 Variable element per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per month $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200 Variable element per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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